Cash Management Module 0 – Introduction

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Cash Management Training

Module 0: Introduction

Intro: Welcome to the District and training statement of purpose

1. Overview—who handles cash?

 Definition of “cash”
 General description of bookkeepers’ duties
 Basic flow of cash through the District

2. Where does money come from and where does it go?

 All levels
o Instructional materials fees
o Meal service accounts
 Elementary level
o Day care services
o Misc. fees (lost books, etc.)
 Secondary level
o Misc. fees (band instruments, activity tickets, etc.)
 Business or instructional services offices

3. Forms and receipts

 District Student Receipt Book
 Money Collection Form
 Activity Fund General Remittance Form

4. Handling Cash Safely

o Issue a receipt
o Have 2 people count cash
o Forward money to bookkeeper as soon as possible
o Store cash in a locked cabinet or sare
o Safeguard your personal possessions
o Report thefts
o Report mismanagement to your supervisor or using the Financial Integrity
Hotline

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1. “Press F-5 to begin”

2. You may press the Escape key on your keyboard to stop this presentation at any time.
If you want to resume viewing the presentation after you have stopped, go to the Slide Show
Tab at the top of the screen and select “From Current Slide.”

3. Welcome to the Cedar Rapids Community School District! This portion of your new employee
training revolves around District finances. Handling District funds is a serious matter governed
by state law and Board policy. During the course of your employment, there may be times
when you are asked to accept money from students, parents, or other co-workers. Even
though you may not handle cash as a regular part of your job, you should have a basic
understanding of how cash flows through District.

Basic Cash Flow Overview

4. Money is collected in the District’s schools and classrooms for many reasons, and often it tends
to pass through several buildings or departments before being deposited in the appropriate
bank account. To manage that flow of money, the District has created a number of special
accounting forms and procedures. Proper use of these tools help to safeguard the District from
theft or mismanagement. They will also increase your personal safety whenever you handle
cash. This training package is designed to show a general overview of how cash moves
through the District, and it outlines each employee’s responsibilities for handling cash
appropriately.

5. The bottom line is this: Avoid accepting cash on behalf of the District for any reason
until you have been authorized to do so and have received training regarding the
procedures and documents used for handling cash.

6. In the meantime, instead of accepting cash, direct students or parents who wish to make
payments to an appropriate staff member or to the building bookkeeper. Who is that? Let’s
start with a look at the “big picture.”

Who handles cash?

7. The term “CASH” includes all money items, including currency and coins, checks, money orders,
and credit card transactions. For security reasons, the District’s goal is to have a minimum of
cash stored in buildings at any given time. Petty cash boxes are generally not allowed, and all
money that is collected is forwarded to the District’s Accounting office and on to the bank as
soon as possible after it is collected.

8. Although parents may make payments for some services and fees online, many prefer to send
money with a student or to pay in person at the school.

9. When that happens, someone in the building must collect the cash, maintain records showing
how much was collected and how the funds are to be distributed, forward the money to the
proper accounts, and reconcile the entire process monthly. At the elementary level, the office
secretary is generally responsible for managing those tasks. In middle schools, one or two
building secretaries may share those duties, and in the high schools, one full-time person is

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assigned to handle money and keep financial records. For training purposes, we’ll refer to any
of those people who are responsible for bookkeeping tasks as “the bookkeeper.”

10. Although the bookkeepers are primarily in charge of cash management within a building,
teachers, department secretaries, administrators, food service cashiers, and other employees
may also be asked to handle cash during the course of their duties. Each person who receives
cash is responsible for knowing and following the proper procedures used to collect and forward
that money to the Bookkeeper.

11. District funds collected by or given to the bookkeeper are forwarded to the District’s central
Accounting Department, which is located at the Educational Leadership and Support Center.
From there, the funds are deposited at the District’s bank. Staff in Accounting monitor all of the
funds that are received throughout the District, ensuring that every dollar is credited to the
proper account. They also make payments and issue refunds on behalf of the District’s schools
and departments.

Where does money come from and where does it go?

12. That’s the “big picture.” Let’s look at some examples of how money comes into the District.

13. All schools within the District collect money for instructional materials. These fees may be paid
online, or they may be given directly to the elementary office secretary or to the secondary
school bookkeepers.

14. All schools within the District also serve meals daily. Deposits to student meal accounts may be
made online or given directly to the food service cashier.

15. At the elementary level, a few schools within the District have onsite programs that provide
before and after school day care. Tuition is charged weekly, and payments are managed by the
Day Care Supervisor. Parents may pay online, place payments in a designated lock box in the
building, or give money directly to the Day Care Supervisor. Day Care staff prepare their own
deposits using a sealed bank bag, which is delivered to the bookkeeper.

16. Most other elementary collections occur only occasionally, as needed during the year. For
example, if a library book is lost or damaged, the replacement cost is generally paid directly to
the media specialist or media secretary after the loss occurs.

17. All cash collected in an elementary school is sent to the elementary secretary/bookkeeper, who
in turn forwards the funds to Accounting for deposit in the proper accounts.

18. At the secondary level, in addition to food service and instructional materials fees, money is
collected for many more reasons, and although funds may be paid online or given directly to
the designated bookkeeper, more people around the building are usually involved in the
collection process.

19. For example, students may pay a secretary in the activities office for activity tickets, give money
to the band or orchestra director for instrument rental, or pay the phys ed teacher for towel
fees. They may take part in fund-raising events or participate in athletic or performance
activities that generate revenues or require fees.

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20. Regardless of the source, all funds collected by secondary building staff are routinely delivered
to the bookkeeper, who compiles the records and forwards the money to its next destination.
Talk with your building bookkeeper about procedures specific to your building, and ask about
records that may be unique to your situation.

21. So far, we’ve given examples of receiving money in a school setting. If you are assigned to one
of the District’s business or instructional services departments, you may also receive money—by
mail or in person—from families, from government agencies or other school districts, from
District employees, or from many other sources. If your office is in a school, take the money to
your building bookkeeper. If you are located in another offsite location or at the ELSC, you will
need to deliver money directly to the Accounting Department.

Forms and Receipts

22. When so many people handle cash, it is important to maintain accurate records of what has
been collected, what fund should be credited, and where the funds are in the transfer process.
At each step along the way, a proper receipt should be issued by the person accepting the
cash. The receipt begins the formal documentation process, and it protects both the person
who transfers the cash and the one who receives it.

23. Parents who pay fees online may print out a receipt at home during the transaction.
Bookkeepers receiving payments at school generate receipts electronically using a computer
program called the KEV System. With the exception of food service transactions, all other staff
must document the receipt of cash using either a District Student Receipt book for individual
receipts or a Money Collection Form for small mass collections. Your bookkeeper can help
you select the proper forms and tell you how to get them.

24. For individual transactions—for example, accepting payment for a lost book—staff may use a
pre-numbered receipt from an official District Student Receipt Book. Each receipt provides
details about the transaction: who paid, how much cash was collected, why it was collected,
and who received the money. You may wish to note additional details on this receipt as
needed to clarify any transaction.

25. Copies of the receipt are used to document the transaction and begin the process of tracking
the cash. The white copies are given to the payers. The pink copies are stored in your building
bookkeeper’s file, and the yellow copies stay in the receipt book to provide a permanent
chronological record of the transactions. All of the receipts issued in the building are official
documents, and they must be properly filed and maintained by the bookkeeper for a minimum
of 5 years.

26. If you need to void a 3-part receipt, you simply write VOID and add your initials to each copy of
the receipt, and then, if needed, issue a new one.

27. The white and pink copies of the voided receipt will be filed in your building file, and the yellow
copy will stay in the receipt book.

28. Sometimes members of the staff need to collect a number of relatively small amounts from a
group of people—for example, collecting towel fees from members of an athletic team. In such

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cases, it’s not necessary for you to fill out individual receipts, but you still need to keep a record
of each student’s payment. The Money Collection Form lists up to 35 payments on a single
page. This form speeds up the collection process.

29. If you use this form to collect cash, fill in the “Activity” line at the top of the form showing why
the money was collected. In the middle of the form, fill in the name of each person making a
payment, noting whether the payment was made by check or in cash. Make sure the entries
are legible—the bookkeeper will need this data for the official records, especially if a refund is
requested at a later date.

30. When the collection is complete, or when the form is full, tally the amount collected by check
and the amount collected in cash. Enter those amounts and the grand total received at the
bottom of the form. That amount should match the amount of money you have on hand.
Enter your name and signature at the top of the form, along with the final date of collection.

31. If you are not sure when you can use the multiple receipt form and when to use individual
receipts, please contact your bookkeeper or the Manager of Accounting for clarification.

32. Regardless of which form of documentation you use when you collect cash, all of the money
and copies of the receipts should be passed along to the bookkeeper as soon as possible.

33. At the secondary level, you should also complete an Activity Fund General Remittance
Form, which further documents the denominations of cash turned in and designates the fund
to be credited. The bookkeeper will check to see that the totals on all of the forms and receipts
match the amount of cash turned in, and then issue an individual receipt for that amount to the
person who collected the cash. This new receipt documents the fact that the cash has passed
from one person to another.

Handling Cash Safely

34. During all cash handling situations, the safety and security of staff, parents, and students
should be your top priority. If you collect or handle cash for the District, please follow these
guidelines: When you collect cash, always issue a receipt or document the collection with a
Money Collection Form.

35. If you handle large sums of cash, ask another person to help you count the money, cross-
checking each other for accuracy.

36. Always count and store cash in a private area out of sight of students, parents, and other staff.
Don’t leave cash where someone can reach it if you are distracted.

37. Forward any money you collect to the bookkeeper as soon as possible after you receive it—
preferably on a daily basis. Do not wait for the collection period to be complete to transfer
cash.

38. If you must store cash for a short period of time, keep it in a locked filing cabinet or in a safe.

39. Every staff member, whether you collect cash for the District or not, should take steps to
minimize theft in your office or classroom. Lock your valuables up during the day in a safe

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place, and avoid putting loose change in your desk. It only takes a momentary absence or
distraction for a theft to occur, and the District is not responsible for your personal items.

40. In the event of a theft, contact the Cedar Rapids Police Department, call the Business Services
office immediately, and fill out a Damage Loss Report form to document the loss.

41. As you can see, the District takes fiscal responsibility very seriously. If you feel someone who
works for or with the District is engaged in financial mismanagement, you may contact your
supervisor, principal, or the Accounting Manager. If you feel more comfortable addressing your
concerns anonymously, you can use the Financial Integrity Hotline. In either case, your
information will be treated confidentially.

42. That’s the general overview. If your new position requires handling cash on a routine basis,
you will be required to attend a Cash Management Training class when you begin. Talk with
your supervisor about scheduling a time with the Accounting Supervisor. In addition,
employees who routinely handle cash are required to complete annual retraining. You will be
contacted by the Accounting Supervisor if you are required to do so.

43. Finally, if you have any questions about this information, please call the Manager of Accounting
or call the District’s Business Services office. Thanks for maintaining fiscal integrity, and again,
welcome to the District!